Estate Tax Calculator
Estimate the federal estate tax due based on assets and deductions.
U.S. Estate and Gift Tax Exemptions and Tax Rates
Historical data for the federal lifetime exemption and top tax rates.
| Year | Lifetime Exemption | Tax Rates |
|---|---|---|
| 2025 | $13,990,000.00 | 40% |
| 2024 | $13,610,000.00 | 40% |
| 2023 | $12,920,000.00 | 40% |
| 2022 | $12,060,000.00 | 40% |
| 2021 | $11,700,000.00 | 40% |
| 2020 | $11,580,000.00 | 40% |
| 2019 | $11,400,000.00 | 40% |
| 2018 | $11,180,000.00 | 40% |
| 2017 | $5,490,000.00 | 40% |
| 2016 | $5,450,000.00 | 40% |
| 2015 | $5,430,000.00 | 40% |
| 2014 | $5,340,000.00 | 40% |
| 2013 | $5,250,000.00 | 40% |
| 2012 | $5,120,000.00 | 35% |
| 2011 | $5,000,000.00 | 35% |
| 2010 | Repealed | 0% |
| 2009 | $3,500,000.00 | 45% |
| 2008 | $2,000,000.00 | 45% |
| 2007 | $2,000,000.00 | 45% |
| 2006 | $2,000,000.00 | 46% |
| 2005 | $1,500,000.00 | 47% |
| 2004 | $1,500,000.00 | 48% |
| 2003 | $1,000,000.00 | 49% |
| 2002 | $1,000,000.00 | 50% |
| 2001 | $675,000.00 | 55% |
Loading...
Understanding the U.S. Federal Estate Tax
Our Estate Tax Calculator helps you estimate the potential federal estate tax liability for high-net-worth individuals, providing a crucial tool for long-term financial and legacy planning.
What is an Estate Tax Calculator?
An Estate Tax Calculator is a financial planning tool used to estimate the amount of federal tax that may be due upon a person's death. It works by tallying up the total value of an individual's assets (like real estate, investments, and cash) and subtracting their liabilities (debts). This net worth is then compared against the federal estate tax exemption limit to determine if any tax is owed. It is an essential tool for high-net-worth individuals engaged in estate planning.
How It Works: Calculating Taxable Estate
The calculator follows the general steps used by the IRS to determine estate tax liability:
1. Gross Estate = Sum of All Assets
2. Taxable Estate = Gross Estate - Deductions (debts, expenses, charitable gifts)
3. Tax Base = Taxable Estate + Taxable Lifetime Gifts
4. Estate Tax = (Tax Base - Exemption Amount) × Tax Rate
Interpreting Your Estimated Tax
The primary result is the **Estimated Federal Estate Tax**. For the vast majority of people, this number will be zero, as their total estate value falls below the very high federal exemption limit ($13.61 million in 2024). If a tax is due, this calculator provides a clear estimate that can be used for planning strategies, such as gifting or setting up trusts, to minimize the final tax bill.
Frequently Asked Questions
What is the federal estate tax?
The federal estate tax is a tax on the transfer of a person's assets to their heirs after death. It is calculated based on the net value of the estate (assets minus liabilities) and only applies to estates that exceed a high exemption amount set by the IRS.
How much can you inherit without paying estate taxes?
For 2024, the federal estate tax exemption is $13.61 million per individual. This means an individual can transfer up to this amount to their heirs without incurring federal estate tax. This amount is indexed for inflation and may change in future years.
Do all states have an estate tax?
No, most states do not have an estate tax. As of 2023, only 12 states and the District of Columbia levy their own estate tax, and their exemption amounts are often much lower than the federal exemption.
What is the difference between an estate tax and an inheritance tax?
An estate tax is paid by the estate of the deceased before assets are distributed to the heirs. An inheritance tax is paid by the heirs themselves after they receive their inheritance. The federal government has an estate tax, not an inheritance tax. A few states have an inheritance tax.
Tips for Estate Planning
- Consult Professionals: Estate planning is complex. Always work with an experienced estate planning attorney and a financial advisor.
- Utilize Gifting: You can give up to the annual gift tax exclusion amount to any number of individuals each year without it counting against your lifetime exemption.
- Set Up Trusts: Certain types of trusts can be used to own assets, effectively removing them from your taxable estate.
- Consider Life Insurance: A life insurance policy can be used to provide liquidity to your heirs to pay any potential estate taxes without having to sell off other assets.
Advertisement Placeholder